Building a Portfolio Based on Asset Classes

Your next video will start in

Recommended Videos

  • Info

  • Comments


March 18 (Bloomberg) -- Paul Sweeting of JPMorgan Asset Management discusses the impact of currencies on individual company earnings and his investment strategy on asset classes on Bloomberg Television’s “On The Move.”

They had -- we heard from on tough augusta -- -- hopefully currency volatility should equal out in the wrong in the long run -- in the long run.

Clearly, you can't close volatility in the short term.

You pick asset classes, but you also pick them in the longer-term.

10 years plus, usually.

You like really -- you like infrastructure and real estate.

Real estate where?

It seems that london feels expensive.

It depends on what you want out of an asset class.

If you're looking for income, then you should be close to home.

You want to be investing in things which are producing a good solid income stream, which is close to your own domestic currency and reflects your domestic inflation rates.

If you are investing for growth, you might want to invest in more speculative real estate projects.

You might want to look at emerging market currencies.

In thing about infrastructure and real estate is we talk about them as if they were single asset classes.

There's a huge amount of diversions as to what you can get from those classes.

It is important for each investor to work out why they want to be in those asset classes and what they want to get.

When you look at the trends in the next 10 years, it must be difficult to predict.

The amount of change we have had with disruptors and technology and the way we consume mobile, mr.

One thing you see pointing out or do you look at tech or do you deliberately ignored tech because it goes so fast that in 10 years it could be a whole other game change?

The way i think about tech is that it is important to get as much diversification as you can for that sort of asset class.

One of the ways of getting that is investing in promotion of u.s. tech companies.

It is important to recognize that if that is a theme, you want to get exposure as broadly as possible.

It is not clear whether it will be apple or samsung or htc that is doing very well.

You want to get as much diversification to the risk as possible.

Who knows what will be the biggest company in 10 years.

In five to 10 years, we don't -- we haven't even heard of the problems that we will have to face them.


One of the main things that i look at when i am building asset allocation is not so much with the returns are going to be for each asset class, but how related are those classes, how much risk is there.

How to interact.

We want to make sure with multi-assets that the risk of everything going down at once is as low as possible.

If it is a big risk for the market, then you can't help it.

In the long run, you want to make sure that you are not too greatly exposed to any single group which might consistently perform badly.

I think treasuries in the medium and long-term range, yields are going to rise.

There is not that attractive an asset class.

If you want to have some sort of safe haven, then sure, treasuries.

The short and might be appropriate.

For long-term investor, it is not going to help you meet your goals.

All, what is your take on the german economy.

We have a strong pound, so it is very unclear what the bank of england will do.

I think the bank of england will be reluctant to do too much , not just until growth is properly embedded in the comp --

This text has been automatically generated. It may not be 100% accurate.


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change